TAILIEUCHUNG - Savings accounts for young people in developing countries: Trends in practice

This paper lays out the key considerations underlying the choice between branch and subsidiary structure for cross-border banking groups and their home and host countries. It examines the relative advantages of different organizational structures for cross-border banking groups and discusses the issues for financial stability from home and host country perspectives. Section II provides a brief overview of the economic distinction between centralized and decentralized structures; it discusses the factors influencing a group’s choice of branch versus subsidiary as well as the implications for home/host financial stability. Section III then provides the policy implications to assess whether the choice could. | Savings accounts for young people in developing countries Trends in practice RANI DESHPANDE and JAMIE M. ZIMMERMAN Savings accounts can facilitate economic social psychological and behavioural changes Recently savings initiatives for young people have been garnering increasing attention within the development community for their perceived potential to promote both youth development and financial inclusion. This paper surveys current practice to better understand the diverse range of youth savings initiatives under way in developing countries and the actors promoting them in a range of forms for various objectives. It also gathers the little evidence available on the extent to which such savings initiatives are fulfilling their perceived dual development potential. The paper ends with key questions that must be answered with further research and practical experimentation before this development potential can be confirmed. Keywords youth children savings products savings programmes government policies a third of the global population today is under age 19. With 90 per cent living in developing countries and 45 per cent living on less than two dollars per day there are more young people than ever who need support tools and opportunities to become productive contributing adults. In the search for such tools scholars and practitioners have focused increasingly on savings and asset building. Research and practice linking young people to savings opportunities suggest that youth-owned savings accounts YSAs could benefit low-income children and youth in at least two ways. First YSAs can facilitate asset effects - economic social psychological and behavioural changes caused by asset ownership - which can improve multiple development outcomes for vulnerable youth. Over the last 20 years a growing body of evidence has shown that building assets and specifically savings can bring a range of benefits to individuals and households including those with low incomes Sherraden 1991 .

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